Forex Technical Analysis – USDJPY technicals and trade setup
No traces of bears for USD/JPY despite sharp spikes on top of DMAs and EMAs, bull trend may go flat but no steep slumps – One touch call best option: As anticipated Fed delivered 25 bps of hikes in its funds rates, consequently, USDJPY bounced vigorously from the lows of 114.772 to the present 117.521 levels. the present prices have consistently been spiking well above DMAs on daily EMAs on weekly and monthly plotting, for now, do not expect a steep slump, instead, capture dips to add longs on bullish EMA crossover.
Ever since the pair has shown a gap up pattern on 07/11 that has gone above DMAs, the present upswings have managed to break-out important resistances of 104.328, 105.529, 106.870 and presently attempting to break out above 111.063 levels, but for today the pair is sensing little bearish pressure at this juncture, however, do not expect steep slump, Capture dips to add longs. RSI still signals strength in current buying interests, while stochastic signals momentum in buying sentiments. Same is the case with leading oscillators on weekly and monthly terms to confirm the buying momentum in major trend as each RSI and stochastic have been converging to the price upswings.
Most importantly on a broader perspective, whipsaws pattern that has lasted for 4-5 months in the major downtrend currently evidences upswings that go above 21EMA. while MACD has been little indecisive on daily but weekly plotting evidences uptrend likely to increase. For now, the trend has gained some traction for upside potential and trending above 10-months highs after bearish rout for almost 1 year or so. Hence, the swings could go very little flatter but definitely not a steep slump. Trade tips: On an intraday trading perspective, for leverage benefits in uptrend sentiments one touch binary call choices ar fairly suitable at this juncture for targets of 117.856 levels.